The median closing price for a home in the Denver metro area was a record $545,000 in June, according to the latest real estate market trends report from the Denver Metro Association of Realtors released this week. The amount is a 1.49 percent increase from May, and a whopping 22.47 percent increase compared to June 2020.
The report uses sales from 11 counties in the metro area, including Adams, Arapahoe, Boulder, Broomfield, Denver and Jefferson counties.
Realtor Brigette Modglin, who's been part of the Association of Realtors' market trends committee since 2016, said some of the reasons for the increase include more millennials looking to buy homes, buyers who want to work from home after the pandemic and Baby Boomers who are also interested in buying, either by upsizing or downsizing from their current home.
She added there was some huge sales that may have skewed numbers a bit. A home in ritzy Cherry Hills Village south of Denver recently sold for $1.1 million above its initial listing price tag. While Modglins aid it wasn't clear whether this sale impacted June's number, she said this is the kind of sale that can cause sale averages to spike. She noted that this is why the median closing price is generally used more often than the average closing price since Modglin said the average is the sum of all home sale prices divided by the total number of sales. The median is more of the "middle" value and is more insulated from outliers like, say, a multimillion-dollar home sale. The report said the average closing price for a home in the metro area in June was $643,645.
The report noted the average number of homes on the market for June is 16,098, and it's based on figures from 1985 to 2020. The market is nowhere near that, with just 3,122 listings last month, a record-low. Despite being a record low, June's figures were a 50.46 percent increase from May, far above the average 5.86 percent change. But even then, the 3,122 listings were 51.09 percent fewer than in June 2020.
The record high listing for June was in 2006 when the area had 31,900 listings, according to the report.
Correction: An earlier version incorrectly spelled Modglin's last name.
